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1. Which one of the following invests in a portfolio that is fixed for the life of the fund?
2. ______ are partnerships of investors with portfolios that are larger than most individual
investors but are still too small to warrant managing on a separate basis.
3. A __________ is a private investment pool open only to wealthy or institutional investors
that is exempt from SEC regulation and can therefore pursue more speculative policies than
mutual funds.
4. Advantages of investment companies to investors include all but which one of the
following?
5. Which of the following typically employ significant amounts of leverage?
I. Hedge funds
II. REITs
III. Money market funds
IV. Equity mutual funds
6. The NAV of which funds is fixed at $1 per share?
7. The two principal types of REITs are equity trusts, which _______________, and mortgage
trusts, which _______________.
8. A contingent deferred sales charge is commonly called a ____.
9. In the United States in 2011, there were approximately _______ mutual funds offered by
fewer than _______ fund families.
10. Part B of a mutual fund prospectus contains information about:
I. Fund holdings by directors and officers
II. Front-end and back-end loads
III. Securities held by the fund at the end of the fiscal year
11. Mutual funds provide the following for their shareholders:
12. The average maturity of fund investments in a money market mutual fund is _______.
13. Rank the following fund categories from most risky to least risky:
I. Equity growth fund
II. Balanced fund
III. Sector fund
IV. Money market fund
14. Which of the following result in a taxable event for investors?
I. Short-term capital gain distributions from the fund
II. Dividend distributions from the fund
III. Long-term capital gain distributions from the fund
15. The type of mutual fund that primarily engages in market timing is called _______.
16. As of 2011, approximately _____ of mutual fund assets were invested in equity funds.
17. As of 2011, approximately _____ of mutual fund assets were invested in bond funds.
18. As of 2011, approximately _____ of mutual fund assets were invested in money market
funds.
19. Management fees for open-end and closed-end funds typically range between _____ and
_____.
20. The primary measurement unit used for assessing the value of one's stake in an
investment company is ___________________.
21. Net asset value is defined as ________________________.
22. Assume that you have just purchased some shares in an investment company reporting
$500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the net
asset value (NAV) of these shares?
23. Assume that you have recently purchased 100 shares in an investment company. Upon
examining the balance sheet, you note that the firm is reporting $225 million in assets, $30 million
in liabilities, and 10 million shares outstanding. What is the net asset value (NAV) of these
shares?
24. The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so, the fund
buys shares in each S&P 500 company __________.
25. Which of the following is
not
a type of managed investment company?
26. Which of the following funds invest specifically in stocks of fast-growing companies?
27. A fund that invests in securities worldwide, including the United States, is called ______.
28. The greatest percentage of mutual fund assets are invested in ________.
29. Sponsors of unit investment trusts earn a profit by ___________________.
30. Investors who want to liquidate their holdings in a unit investment trust may
___________________.
31. Investors who want to liquidate their holdings in a closed-end fund may
___________________.
32. __________ fund is defined as one in which the fund charges a sales commission to either
buy into or exit from the fund.
33. Which of the following is a
false
statement regarding open-end mutual funds?
34. __________ funds stand ready to redeem or issue shares at their net asset value.
35. Revenue sharing with respect to mutual funds refers to _________.
36. Higher portfolio turnover:
I. Results in greater tax liability for investors
II. Results in greater trading costs for the fund, which investors have to pay for
III. Is a characteristic of asset allocation funds
37. Low-load mutual funds have front-end loads of no more than _____.
38. Most real estate investment trusts (REITs) have a debt ratio of around _________.
39. Measured by assets, about _____ of funds are money market funds.
40. Which of the following is
not
a type of real estate investment trust?
I. Equity trust
II. Debt trust
III. Mortgage trust
IV. Unit trust
41. ______________________ are often called
mutual funds.
42. Mutual funds account for roughly ______ of investment company assets.
43. An official description of a particular mutual fund's planned investment policy can be
found in the fund's _____________.
44. Mutual funds that hold both equities and fixed-income securities in relatively stable
proportions are called ____________________.
45. ______ are mutual funds that vary the proportions of funds invested in particular market
sectors according to the fund manager's forecast of the performance of that market sector.
46. Specialized-sector funds concentrate their investments in _________________.
